Consolidating federal student loans-Unsubsidized, Subsidized, PLUS-may help you manage your debt with a fixed interest rate and a single monthly payment.

How It Works

With loan consolidation, you combine the federal loans belonging to you into a single loan at a fixed interest rate. That means you can't consolidate loans with your spouse. Also, you cannot consolidate private loans with your federal loans.

Your fixed interest rate is determined by taking a weighted average of your loan rates rounded up to the nearest 1/8 of 1%. There is no cap on the interest rate of a Direct Consolidcation Loan.